The GIFT Nifty recorded a 0.22% loss during Thursday’s early trading session, with a value of 19,470 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex. On Wednesday, benchmark Indian equity indices Nifty and Sensex ended mixed but flat amid volatility. Nifty 50 hit a fresh all-time high above 19,400 but pared its gains to settle 0.05% higher, while Sensex ended lower by 0.05% at 65,446.04.
“Global worries along with moderation in Service PMI data briefly impacted the domestic market’s rally. Heightened trade tensions between the US and China, coupled with uncertainties surrounding the upcoming release of FOMC minutes, tested the risk appetite of global investors. However, the market’s last-minute broad based recovery serves as a reaffirmation of investors’ confidence in the Indian economy,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the red on Thursday. China’s Shanghai Composite gained 0.02% in trade, trading flat, while Japan’s Nikkei 225 tanked 1.03%. Hong Kong’s Hang Seng index fell by 1% while South Korea’s Kospi was lower by 0.24%. The Taiwan Weighted index recorded a loss of 0.69%.
Crude Oil
Oil prices moved little in early Asian trade on Thursday as the prospect of tighter supply with output cuts from Saudi Arabia and Russia and a bigger-than-expected drop in U.S. crude stocks were offset by worries over a sluggish demand recovery in China.
FII/DII Data
Foreign institutional investors (FII) bought shares worth a net Rs 1,603.15 crore, while domestic institutional investors (DII) sold shares worth a net Rs 439.01 crore on 5 July, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has no securities on its F&O ban list for 6 July. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Bank Nifty Outlook
“Bank Nifty index recently experienced selling pressure from higher levels, but the bears were unable to break the support at 45,000. As a result, the index has been trading within a range of 45,000-45,500.A break on either side of this range will determine the next directional move for the index,” said Rupak De, Senior Technical & Derivative analyst at LKP Securities.
Technical View
“The overall uptrend status of Nifty remains intact. Though, the market is placed at the new highs, the selling pressure has not been emerging from near the hurdle. If such a pattern continues for the next 1-2 sessions, without showing any further damages, then that could eventually result in a sharp upside bounce in the market. Immediate support is at 19,300 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.